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Motley Fool Money
What Will Make Buffett Spend?
Nov 6, 2023
In this engaging discussion, financial analysts Matt Frankel and Mary Long delve into Berkshire Hathaway's staggering $157 billion cash reserve and what it takes for Warren Buffett to invest again. They dissect potential impacts of ongoing lawsuits on Berkshire's real estate prospects and highlight the booming insurance sector. Additionally, Mary sheds light on the significant cybersecurity opportunities for Palo Alto Networks as it navigates modern threats, emphasizing innovation and trust in a rapidly evolving landscape.
37:14
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Quick takeaways
- Berkshire Hathaway is holding a significant amount of cash and is cautious about spending, looking for deals that can outperform treasury yields.
- Berkshire Hathaway is involved in legal disputes over accounting methods and real estate commission structures, highlighting the need to protect the company's interests.
Deep dives
Berkshire's Cash Position and Investment Strategy
Berkshire Hathaway has reached a new record cash balance of $157 billion, with the majority of it being held in short-term treasuries. The company's reduced stock buybacks and lower investment in its stock portfolio suggest a cautious approach to spending. Warren Buffett's focus on finding a deal that can outperform treasury yields has become more critical as the portfolio generates $7 to $8 billion of interest income annually. The larger cash position, coupled with a market downturn, has expanded the potential pool of companies that Berkshire could invest in.
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